Netflix bested analyst expectations for its Q2 earnings, announced on Monday, posting earnings per share of $0.49 and quarterly net income of $29 million. Both of those figures marked substantial increases from a year ago.
The company's revenue climbed almost 20 percent to $1.07 billion, which was even with what analysts foretold. Despite the results, the company's stock is down more than five percent in after hours trading.
Netflix now has almost 30 million domestic subscribers, and the company attributed its second-quarter growth in that department to "Arrested Development." Netflix offered the cult hit a second life during the quarter, releasing a new season of the show seven years after Fox canceled it.
"We generally expect net additions in Q2 to be lower than prior year Q2 […]," CEO Reed Hastings and CFO David Wells wrote in a note. "This Q2, however, was an exception, we believe due to the launch of 'Arrested Development.' This show already had a strong brand and fan base, generating a small but noticeable bump in membership when we released it."
Netflix, which distributed "House of Cards" and "Orange Is the New Black," said it will expand into documentaries and stand-up comedy specials.
The number of subscribers on the DVD side of Netflix's business fell by more than 1.7 million, but the company made up for it by adding more than 4 million streaming subscribers overseas. International expansion remains a costly endeavor, and the company reported a loss of $66 million from that sector.
Looking ahead to its next quarter, the company forecast a slight drop in profits. One reason may be increased content costs. Hastings and Wells wrote that costs would escalate for both acquisitions and their original series.